Cooking Gas Prices to Rise After Govt Enforces Tax Directive

  • File photo of Gas Cylinders on display at an outlet in Nairobi City
    File photo of Gas Cylinders on display at an outlet in Nairobi City
    File
  • More than 200 Liquid Petroleum Gas trucks are held at the Kenya-Tanzania border point in a tax dispute that has lasted for a week.

    According to media reports, the truckers blamed the government over claims of increasing taxes charged on trucks in transit.

    Chairman of the Independent Gas Dealers Association, Yusuf Hussein, lamented the high prices, claiming that they rose from Ksh70,240 per tonne to Ksh107,973 per tonne. 

    File photo of Gas Cylinders on display at an outlet in Nairobi City
    File photo of Gas Cylinders on display at an outlet in Nairobi City
    File

    "What I'm getting from our supplies is that they have increased the prices by Ksh37,732. If you look at it, it's a huge increase in pricing," Hussein stated. 

    He noted that in line with the development, they would be forced to raise it from Ksh170 per kilo to Ksh250 per kilogram.  

    This means that the 6kg would cost at Ksh1500 from Ksh1200 and that of a 13 kg cylinder to Ksh3500.

    However, in a statement seen by Kenyans.co.ke, the Kenya Revenue Authority (KRA) disputed the claims, noting that the VAT is not a new tax as reported. 

    "KRA would like to clarify that the information is not true and misleading. The VAT on LPG currently being enforced was reintroduced in July 2021 and is not a new tax as reported. During a recent compliance check, KRA noted that there have been cases of undervaluation by importers on LPG products, which is an offence."

    "The reports were provided to the taxpayers for compliance and the affected importers will be facilitated to clear their consignments after full compliance."

    The Tax Authority noted that after intensive talks with importers, the owners of the trucks were directed to comply and clear their LPG consignments from the Namanga border. 

    "A compliance advisory was issued to the Namanga Station for implementation and an additional assessment was carried out on Friday 6th May, 2022. The reports were provided to the taxpayers for compliance and the affected importers will be facilitated to clear their consignments after full compliance."

    The implementation of the taxes will further compound the high cost of living, that has seen prices of essential commodities skyrocket.

    Namanga One Stop Border post
    Namanga One Stop Border post
    File